69-587 and Eastman Kodak, provide a framework for determining whether the taxpayer, in the instant case, can deduct
the employment taxes related to the accrued vacation and bonus pay if it establishes certain elements.
RMC further argued that the sale of the note by its 100% shareholder to the unrelated third party converted the accrued interest prior to 1994 into a new liability, thus permitting the taxpayer to accrue and deduct
the entire amount in 1994.
Small businesses can deduct
up to 70% (up from 60%) of their healthcare costs for tax year 2002.
73-146, taxpayers presumably should be allowed to follow the IRS's guidance and deduct
costs related to payments to employees to terminate unexercised stock options and warrants.
Investment may deduct
as a theft loss stolen investment funds in the year the theft is discovered, to the extent there is no reasonable prospect of recovery.
In general an accrual basis taxpayer may not deduct
an expense until (1) all events have occurred that determine the fact of liability, (2) the amount of liability can be determined with reasonable accuracy and (3) economic performance or payment has occurred.
For 2004 and 2005, instead of deducting state and local income taxes, taxpayers would be able to choose to deduct
state and local sales taxes by either (1) accumulating receipts or (2) using IRS sales tax tables and adding actual sales taxes paid for major items, such as vehicles.
You can deduct
the business percentage of payments you make for utilities and general home services.
30) Thus, an already established and going concern may deduct
ordinary and necessary expenses incurred in the expansion of its existing normal business activity.
2/16/05, the Sixth Circuit affirmed a district court's decision (291 FSupp2d 699 (WD TN 2003)), that the taxpayer could currently deduct
off-wing maintenance costs related to engine shop visits (ESVs) for aircraft engines and auxiliary power units (APUs).